A rebound in China's exports also lifted investment sentiment. Export growth more than quadrupled from November's level to 14.1 percent in December. Imports rose 6 percent after failing to grow at all in November.

Hong Kong's Hang Seng gained 0.6 percent to 23,354.31 following a decision by the China Securities Regulatory Commission to allow some initial public offerings of mainland companies to be carried out in Hong Kong.

The move is an effort to clear a backlog of IPOs that the understaffed CSRC cannot handle, said Francis Lun, managing director of Lyncean Holdings in Hong Kong.

"It's a practical way to handle an emergency problem," Lun said. It will boost the Hong Kong exchange's market capitalization by one-third, he said.

Hong Kong-listed Aluminum Corp. of China surged 6.5 percent a day after U.S. aluminum giant Alcoa forecast demand would grow 7 percent in 2013, up from a 6 percent gain in 2012.

Later Thursday, the European Central Bank will meet to set monetary policy for the 17 countries that use the euro. It is expected to keep its benchmark interest rate unchanged at the record low of 0.75 percent even though the eurozone economy as a whole is back in recession. Investors are also awaiting the release in the U.S. of weekly jobless claims.

Benchmark crude oil contract for February delivery was up 59 cents to $93.68 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell 5 cents to close at $93.10 per barrel on the Nymex on Wednesday.

In currencies, the euro rose to $1.3058 from $1.3053 while the dollar rose to 88.11 yen from 87.75 yen.